(EnergyAsia, August 17 2012, Friday) — Organisation of Petroleum Exporting Countries (OPEC) members will have little room to boost oil production over the next five years, US consulting firm Energy Security Analysis Inc (ESAI).
In its latest five-year forecast of the global crude oil markets, the Wakefield, Massachusetts firm said the call on the cartel’s crude supply will remain in the 30 to 30.5 million b/d range.
“If OPEC can get back to and keep production restrained in this manner, the members can prevent further price weakness. To manage this modest growth in demand for its oil, OPEC must adapt to changes in members’ productive capacity and enact a new and improved production allocation system,” it said.
ESAI also forecast that OPEC’s spare capacity will rise next year to around four million b/d, sufficient for the entire five-year period to temper the upside for oil prices and help the world to cope with small, short-term supply disruptions.